Revenue Recognition controls
Learn how to adjust the behavior of Revenue Recognition with controls.
Configure Revenue Recognition controls to customize how revenue is recognized specifically for your business. Adjustments to controls take up to 36 hours to complete. When completed, all Revenue Recognition charts and reports reflect the settings.
Amortization granularity 
By default, Revenue Recognition recognizes revenue by the millisecond. We also support recognizing revenue by the day, or by the month with different treatment options for handling the first and last months of the service period.
| Amortization | Descriptions |
|---|---|
| By millisecond (default) | Recognize revenue down to the millisecond. |
| By day | Recognize revenue down to the day. Cut off the last day. |
| By month evenly | Recognize revenue down to the month. Cut off the last month. |
| By month evenly, first and last month prorated | Recognize revenue down to the month. Prorate the amounts in the first and last months by millisecond. |
Adjusting this configuration affects all of your journal entries within Revenue Recognition. If you want to avoid creating corrections in the current period, we recommend that you open all accounting periods prior to the adjustment.
Catch-up revenue
Revenue Recognition primarily recognizes revenue based on the service period attached to transactions. However, when the service period begins before the booked date (that is, the finalization date for an invoice, the creation date or imported booked date for a standalone charge), the revenue from the prior periods are instead recognized entirely in the month of the booked date to avoid making changes to the past. We refer to this type of revenue as catch-up revenue.
You can disable or enable this behavior by toggling the Apply catch-up revenue switch.
Toggling this configuration affects any applicable journal entries you have within Revenue Recognition. If you want to avoid creating corrections in the current period, we recommend that you open all accounting periods prior to the adjustment.